This paper provides a political economy overview and analysis of the causes and consequences of the global financial crisis of 2007-2009. It begins with an examination of the reasons for the crisis and the response of governments to it. Close attention is paid to the recent sovereign debt problems in the West, particularly in the Eurozone, as well as the impact of the crisis in East Asia and its role in leading a multi-speed global economic recovery. The paper then explores the political implications of the crisis, focusing largely on the damage done to the pre-crisis balance of power and financial orthodoxy. The paper then explores the flurry of international regulatory initiatives that have emerged since the onset of the crisis and the results of the G-20 summits. The paper concludes by analyzing these results from a political economy perspective focused on the role of power, domestic politics, and ideas. The conclusion ends with a cautionary note about growing tendencies toward unilateral and regional action taken outside the G-20 process.
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